There's No Place Like Homebuilders


Martin Tillier

 | Jul 10, 2014 | 4:00 PM EDT
  • Comment
  • Print Print
  • Print

Wednesday, after market hours, Lumber Liquidators (LL) announced second-quarter same-store sales fell by 7.1%, and it significantly lowered its full-year 2014 profit forecast. Unsurprisingly, the stock has been hammered. In Thursday trading, the stock was recently down more than 20%. When I see movement like that, I look for opportunity. Unfortunately, I cannot find one in LL -- but that doesn't mean there isn't one at all.

I can't see an opportunity in the stock of Lumber Liquidators because the big drop is now over and looks entirely justified. The stock is not worth selling now, nor does it represent an obvious contrarian buy. There is an opportunity, though, and it lies in the other stocks that being dragged down with it, specifically, among the homebuilders....383 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money trading floor.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. Staffed with nearly 3 dozen investing pros, money managers, journalists and analysts, Real Money gives you a flood of opinions, analysis and trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please Login
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.